Eight Steps for Boosting Associate and Lateral Retention

Attorney attrition is expensive. Replacing departing colleagues means not only recruiting and hiring strong candidates, but also investing in training for the new hires. Cost estimates for replacing an associate are typically between 100% and 200% of the associate's annual salary. The soft costs ' lost institutional knowledge and potential morale problems ' may be even greater. And attorneys who leave with bad feelings about the firm can spread their ill will in the local legal community, or try to lure others to follow. A mass exodus, of course, can cripple a firm.

These are not hypothetical problems. Attrition is a continuing concern for many firms. According to 'Keeping the Keepers: Strategies for Associate Retention in Times of Attrition' (the landmark study on attrition conducted by the NALP Foundation in 1998 and 2003), almost 1% of entry-level associates leave each month. This doesn't sound like a high turnover rate, but it means, for instance, that by early in the fourth year of employment, more than a third of all associates have departed. By the sixth year, more than half of associates have moved to in-house positions, joined other firms or left the practice of law altogether.

Attrition rates for lateral hires are just as high, and over certain time frames, even higher. Two-thirds of laterals move again within 6 years.

Adjust Firm Culture

How can your firm combat the attrition problem? The obvious answer is to create a culture where attorneys feel valued and challenged, where they can attain success, and yes, enjoy themselves too. Unfortunately, cultures are not available pre-packaged and ready-to-install. Like a personality, a culture is merely the aggregate of all words, actions, choices and attitudes.

In a law firm, culture is expressed through rules, policies and, especially, choices. Every announcement, decision and investment sends a signal, intended or not, about what the firm values. For instance, when firm management invests tens of thousands of dollars in a time-tracking system, frowns on vacation and forbids flex time, the priority of production over work/life balance will ring loud and clear for many attorneys. By the same token, liberal access to training programs sends a message that professional growth is valued.

Over time, attorneys make career decisions based on how well their own priorities match those of the organization for which they work. The better the match, the lower the attrition rate. In these evaluations, seemingly small things can mean a great deal.

With this in mind, here are a few choices that are likely to foster a culture that encourages attorneys to stay.

Keep No Secrets

Food, water and shelter may be basic human needs, but information is high on the list as well. Attorneys thrive on information, so make it freely available. Facilitate communication up, down and across the firm. Make sure attorneys know what is going on beyond their own cases or practice areas, and not just in times of crisis. Even the simplest communication tools ' from firm newsletters to monthly group meetings to mentoring relationships ' will go a long way. Two-way communication is even better. For instance, holding roundtable discussions where associates can freely exchange questions and ideas with managing partners demonstrates the value of individuals' opinions and perspectives. And don't forget an occasional social gathering where attorneys can mingle with colleagues with whom they might never have the opportunity to work. A small investment in a weekly or monthly social hour can pay big benefits.

Let Freedom Ring

While some attorneys may seek out specialized practices where they can focus exclusively on a very narrow range of transactions, many more value the opportunity to explore. Rotational assignments for new associates help them find the right area of concentration, and cross-discipline staffing helps team members see projects from new angles. Involvement in firm committees and initiatives helps attorneys appreciate the business aspects of running a law firm. At Goulston, pro bono work is also a top priority. Associates are encouraged to take on pro bono work, especially in areas of personal or community interest. Fully crediting time spent working on pro bono matters as billable hours demonstrates the firm's commitment to the attorney's priorities.

Think Outside the Office

The members of your firm think about many things beyond the walls of the conference room or courthouse. You should, too. Consider the key life issues people in your firm are facing, and imagine ways to help. This may include increasingly common policies that ease the burden for new and adoptive parents, offer more flexible work hours, and so on. But don't stop there. For young associates burdened with school debt, owning a home may seem like a distant dream. Consider debt-relief policies or a mortgage assistance program to bring home ownership into reach. Creative approaches to real life issues are sure to reduce attrition.

Change the Scenery

One of the least appealing aspects of one's early years at a law firm is the sensation of being at the bottom of a tall and weighty totem pole. It doesn't have to be that way. Consider moves that eliminate needless status distinctions between senior and junior colleagues. Take a more democratic approach to assigning parking spaces. Make sure everyone flies business class. At Goulston, we take it a step farther. We rotate offices every few years to ensure that even the most junior members of the firm can enjoy a spectacular view of Boston Harbor. The rotation not only eliminates the typically rigid office hierarchy; it literally offers attorneys a fresh point of view ' and new office neighbors as well.

By the way, our firm's alternative stance on hierarchy goes further than the office rotation. There are no senior and junior partners. The firm is actually organized as a corporation where an associate is eligible to be promoted to director after 8.5 years. All directors are both officers and shareholders of the corporation. These institutional measures cannot be implemented as simply as an office rotation, but they point to another category of choices a firm can make to shape its culture.

Celebrate Achievement

You've worked hard to attract top law grads and laterals to your firm. These are people who have stood out for all the right reasons through their academic, intern and clerk careers. Honorary societies, law review and other distinctions are part of their DNA. Don't let the recognition end abruptly once they come on board. Nominating attorneys for local, bar association or industry recognition provides reinforcement for top achievers and brings positive attention to the firm too. Internal recognition also works well.

Invest in Performance

No matter how positive your office atmosphere, and how creative your perks, attorneys will stay only when they feel a real opportunity for success. Investing time and attention in programs that build the qualification, knowledge and confidence of attorneys makes a bold statement that firm and personal priorities are aligned. These efforts can take many forms, from formal training programs and mentoring relationships to the regular review of cases and deals with more senior colleagues.

Build It in

Minimizing attrition is an admirable goal of the entire firm community, but whose responsibility is it? Who sets aside time to consider specific programs, policies and personal efforts that will discourage attrition? While there's no single right answer, this is a question every firm should consider. At Goulston, several committees keep an eye on attrition-related issues. The Integration Committee, composed of directors and associates, meets on a regular basis to ensure that personal and professional needs of new people starting at the firm are addressed. The Associate Development Committee monitors the professional development of all associates, as well as firm-wide initiatives for training and mentoring. And the firm's Diversity Committee focuses on hiring, retention, training and professional-development issues.

Share a Laugh

Given the long hours and high stakes inherent in many legal matters, the ability to take a breath and share a laugh now and then is sure to lower stress and relieve frustration. Toward this end, invest in a surprise now and then ' an ice cream break, tickets to a play or concert, free massages. The cost of the surprise is less important than the spirit behind it.

Conclusion

The cumulative impact of these eight steps is a firm where hard work can also be serious fun. Many more factors contribute to the complex idea of culture. That is really the key point here. Culture is everything that happens in a firm, so any effort to reduce attrition should start with the widest possible view of what it is really like to work at your firm.

Nancy Needle is Director of Legal Recruiting and Beth Marie Cuzzone is Director of Business Development at Goulston & Storrs (www.goulstonstorrs.com). The Boston-based firm has been named among America's Greatest Places to Work with a Law Degree. The authors can be reached at [email protected] and [email protected]. This article originally appeared in A&FP's sibling newsletter Law Firm Partnership & Benefits Report.

Attorney attrition is expensive. Replacing departing colleagues means not only recruiting and hiring strong candidates, but also investing in training for the new hires. Cost estimates for replacing an associate are typically between 100% and 200% of the associate's annual salary. The soft costs ' lost institutional knowledge and potential morale problems ' may be even greater. And attorneys who leave with bad feelings about the firm can spread their ill will in the local legal community, or try to lure others to follow. A mass exodus, of course, can cripple a firm.

These are not hypothetical problems. Attrition is a continuing concern for many firms. According to 'Keeping the Keepers: Strategies for Associate Retention in Times of Attrition' (the landmark study on attrition conducted by the NALP Foundation in 1998 and 2003), almost 1% of entry-level associates leave each month. This doesn't sound like a high turnover rate, but it means, for instance, that by early in the fourth year of employment, more than a third of all associates have departed. By the sixth year, more than half of associates have moved to in-house positions, joined other firms or left the practice of law altogether.

Attrition rates for lateral hires are just as high, and over certain time frames, even higher. Two-thirds of laterals move again within 6 years.

Adjust Firm Culture

How can your firm combat the attrition problem? The obvious answer is to create a culture where attorneys feel valued and challenged, where they can attain success, and yes, enjoy themselves too. Unfortunately, cultures are not available pre-packaged and ready-to-install. Like a personality, a culture is merely the aggregate of all words, actions, choices and attitudes.

In a law firm, culture is expressed through rules, policies and, especially, choices. Every announcement, decision and investment sends a signal, intended or not, about what the firm values. For instance, when firm management invests tens of thousands of dollars in a time-tracking system, frowns on vacation and forbids flex time, the priority of production over work/life balance will ring loud and clear for many attorneys. By the same token, liberal access to training programs sends a message that professional growth is valued.

Over time, attorneys make career decisions based on how well their own priorities match those of the organization for which they work. The better the match, the lower the attrition rate. In these evaluations, seemingly small things can mean a great deal.

With this in mind, here are a few choices that are likely to foster a culture that encourages attorneys to stay.

Keep No Secrets

Food, water and shelter may be basic human needs, but information is high on the list as well. Attorneys thrive on information, so make it freely available. Facilitate communication up, down and across the firm. Make sure attorneys know what is going on beyond their own cases or practice areas, and not just in times of crisis. Even the simplest communication tools ' from firm newsletters to monthly group meetings to mentoring relationships ' will go a long way. Two-way communication is even better. For instance, holding roundtable discussions where associates can freely exchange questions and ideas with managing partners demonstrates the value of individuals' opinions and perspectives. And don't forget an occasional social gathering where attorneys can mingle with colleagues with whom they might never have the opportunity to work. A small investment in a weekly or monthly social hour can pay big benefits.

Let Freedom Ring

While some attorneys may seek out specialized practices where they can focus exclusively on a very narrow range of transactions, many more value the opportunity to explore. Rotational assignments for new associates help them find the right area of concentration, and cross-discipline staffing helps team members see projects from new angles. Involvement in firm committees and initiatives helps attorneys appreciate the business aspects of running a law firm. At Goulston, pro bono work is also a top priority. Associates are encouraged to take on pro bono work, especially in areas of personal or community interest. Fully crediting time spent working on pro bono matters as billable hours demonstrates the firm's commitment to the attorney's priorities.

Think Outside the Office

The members of your firm think about many things beyond the walls of the conference room or courthouse. You should, too. Consider the key life issues people in your firm are facing, and imagine ways to help. This may include increasingly common policies that ease the burden for new and adoptive parents, offer more flexible work hours, and so on. But don't stop there. For young associates burdened with school debt, owning a home may seem like a distant dream. Consider debt-relief policies or a mortgage assistance program to bring home ownership into reach. Creative approaches to real life issues are sure to reduce attrition.

Change the Scenery

One of the least appealing aspects of one's early years at a law firm is the sensation of being at the bottom of a tall and weighty totem pole. It doesn't have to be that way. Consider moves that eliminate needless status distinctions between senior and junior colleagues. Take a more democratic approach to assigning parking spaces. Make sure everyone flies business class. At Goulston, we take it a step farther. We rotate offices every few years to ensure that even the most junior members of the firm can enjoy a spectacular view of Boston Harbor. The rotation not only eliminates the typically rigid office hierarchy; it literally offers attorneys a fresh point of view ' and new office neighbors as well.

By the way, our firm's alternative stance on hierarchy goes further than the office rotation. There are no senior and junior partners. The firm is actually organized as a corporation where an associate is eligible to be promoted to director after 8.5 years. All directors are both officers and shareholders of the corporation. These institutional measures cannot be implemented as simply as an office rotation, but they point to another category of choices a firm can make to shape its culture.

Celebrate Achievement

You've worked hard to attract top law grads and laterals to your firm. These are people who have stood out for all the right reasons through their academic, intern and clerk careers. Honorary societies, law review and other distinctions are part of their DNA. Don't let the recognition end abruptly once they come on board. Nominating attorneys for local, bar association or industry recognition provides reinforcement for top achievers and brings positive attention to the firm too. Internal recognition also works well.

Invest in Performance

No matter how positive your office atmosphere, and how creative your perks, attorneys will stay only when they feel a real opportunity for success. Investing time and attention in programs that build the qualification, knowledge and confidence of attorneys makes a bold statement that firm and personal priorities are aligned. These efforts can take many forms, from formal training programs and mentoring relationships to the regular review of cases and deals with more senior colleagues.

Build It in

Minimizing attrition is an admirable goal of the entire firm community, but whose responsibility is it? Who sets aside time to consider specific programs, policies and personal efforts that will discourage attrition? While there's no single right answer, this is a question every firm should consider. At Goulston, several committees keep an eye on attrition-related issues. The Integration Committee, composed of directors and associates, meets on a regular basis to ensure that personal and professional needs of new people starting at the firm are addressed. The Associate Development Committee monitors the professional development of all associates, as well as firm-wide initiatives for training and mentoring. And the firm's Diversity Committee focuses on hiring, retention, training and professional-development issues.

Share a Laugh

Given the long hours and high stakes inherent in many legal matters, the ability to take a breath and share a laugh now and then is sure to lower stress and relieve frustration. Toward this end, invest in a surprise now and then ' an ice cream break, tickets to a play or concert, free massages. The cost of the surprise is less important than the spirit behind it.

Conclusion

The cumulative impact of these eight steps is a firm where hard work can also be serious fun. Many more factors contribute to the complex idea of culture. That is really the key point here. Culture is everything that happens in a firm, so any effort to reduce attrition should start with the widest possible view of what it is really like to work at your firm.

Nancy Needle is Director of Legal Recruiting and Beth Marie Cuzzone is Director of Business Development at Goulston & Storrs (www.goulstonstorrs.com). The Boston-based firm has been named among America's Greatest Places to Work with a Law Degree. The authors can be reached at [email protected] and [email protected]. This article originally appeared in A&FP's sibling newsletter Law Firm Partnership & Benefits Report.